4 Pitfalls to Avoid when Using Dropship Companies to Sell On Ebay

What is Dropshipping?

Dropshipping is a popular option for many people starting out on an Ebay Business. Simply put, you list an item on Ebay for sale but instead of storing that inventory yourself, the stock remains with the dropshipper. When you have made a sale, you inform the dropship company to send the product directly to your customer. Some dropship companies can even put your company label on the boxes sent to the customers.

In this way, you save on the shipping cost to your own place and it also spares you the hassle of storing inventory. It all sounds good but there are several things to note before jumping in on a wholesale dropshipper.

1. Dropshipping May Be Costly

You have to pay for the cost of the labor and materials involved in drop shipping. Generally this is between $2 and $5 per item. This may eat into your profit margin if you are operating a small margin.

2. You are still held accountable for any shipping problems

Since you are not the one handling the shipment, you are actually unable to control what ever goes wrong in a shipment. Is the package nicely packed with sufficient packing material? Is the shipment delayed? When was the item shipped? You might find yourself having to answer these questions from customers even though you might be completely out of the loop on what is happening.

3. Low stock levels may cause unhappy customers
Your drop shipper won't necessarily tell you when they are running low on stock. If they run out and have to do a back order, the delay time between customers making a payment and receiving their goods increases. This would definitely be a major turn off for most people. Therefore, do be careful and check on the Dropshippers stock level often. You could also keep a few pieces of the merchandise you are selling as a backup so that at anytime the dropship company fails to deliver, you can come in and send out the package as quickly as possible.

4. Hard to find a distributor who will do it and do it well
Many distributors will not drop ship because of the extra paperwork involved. Then there is the matter of checking up on quality standards to make sure your items are being packed correctly

Having read the above, have you given up on the idea of using dropship companies to help you get started selling on Ebay? Well do not despair, for all these can be avoided if you can find reliable wholesale dropshippers who can get it right the first time, everytime.

That said, reliable wholesale Dropshippers are a rare gem on the net and if you can find one, you may have struck gold for it means you can have a great partnership for many years to come and you can enjoy all the benefits of wholesale dropshipping.

Forget about buying wholesalers or dropship lists on the internet. These are mostly outdated and filled with middleman trying to earn some quick money from you. Furthermore, there is no way you can find out how good the dropship company really is until you try out for yourself, something you might want to avoid.

The best way to find reliable dropship companies is to join an unbiased third party who does all the reviews and testing out of dropship companies for you, before you even engage them yourself. That way, you can read unbiased reviews of each dropship companies provided by this third party as well as reviews from other sellers who engage their services. This will definitely aid you in making a more informed decision.

To find reliable wholesalers and dropship companies, visit www.Making-Income-At-Home.com to and subscribe to the mailing list to get all the information you need.

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